Robert Allen Stanford charged with $8billion fraud

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The U.S. Securities and Exchange Commission (SEC) today charged billionaire financier Robert Allen Stanford over an alleged multi-billion dollar fraud.

The SEC filed a complaint against Mr. Stanford and three of his companies for “orchestrating a fraudulent, multi-billion dollar investment scheme” relating to an 8 billion dollar CD program.

“Stanford and the close circle of family and friends with whom he runs his businesses perpetuated a massive fraud based on false promises and fabricated historical return data to prey on investors,” an SEC spokesman said.

Rose Romero, Regional Director of the SEC’s Fort Worth Regional Office, added, “We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world.”

Regulators claim Stanford International Bank, through a network of advisers, sold billions of dollars worth of so-called “certificates of deposit” to investors promising “improbable and unsubstantiated” high returns.

Buyers of these CDs were told these deposits were safe, it is alleged.

Mr. Stanford has been placed under a temporary restraining order and has had his assets frozen.